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SELLutions


When the Prospect Fights You on Price, What To Do?

by Admin 3. June 2011 09:46

I like your proposal, but your price is too high.”

“I can get other companies to do the job at a lower cost.”

“What can you do about your rates?”

 

“I’ll do the deal, but you’ve got to knock 2 points off…take it or leave it.”

 

Here’s a true story I heard from a banking rep named Jennifer.  Jennifer once finished a presentation for a prospect after he had qualified on need and budget.  He had all the decision makers in the room, and they agreed to make a decision at the end of her presentation. 

 

The presentation itself was textbook.  Jennifer had everyone involved, and she addressed each of his or her requirements.  Her presentation points covered all of the prospect’s issues in their priority, and only addressed issues relevant to the sale.

 

At the end, one of the decision makers made this simple statement:

 

“Jennifer,” he said. “This is great and we love the job you did for us.  We’d love to begin, but we want you to give us a discount.  What can you do for us about your price?”

 

Jennifer remembered the following command of sales: never defend or justify.  So she did something most salespeople in her position never do – she not only obeyed the command, but gave it a twist.

 

“I can raise it,” she replied.

 

The prospect laughed.  “Jennifer,” he said.  “I know you’ve got more leeway on your interest rate.”

 

Calmly, Jennifer asked “I suppose this is over then?”

 

“What do you mean?” the surprised prospect wanted to know.

 

“Simple,” a nonplussed Jennifer answered.  “My price is too high. So this is over.”  She held out her hand to thank him for his time.

 

“No, wait,” the prospect rebutted. “Your rates are high, but your ideas are better than any we’ve ever seen.”

 

“I appreciate that,” Jennifer responded.  “But you aren’t going to buy it, so I wanted to thank you for the opportunity.”

 

The prospect shook his head.  “Jennifer, telling people they aren’t going to buy is no way to make it in sales.”

 

Jennifer smiled pleasantly.  “Thank you for the advice.”

 

“Don’t be to hasty to leave,” the prospect then said.  “Actually, Jennifer, we’re going to do this.”

 

And the sale was made—high rates and all.

 

Sales process at work. Stick to it!

 

The lesson is this: when used at the right time, telling a prospect that “it’s over” can make a sale happen because forces the prospect to make a decision.  Why?  Think back to when you were a child.  You parents told you couldn’t have something you really wanted, and it made you want it even more.  Not that prospects are children and you’re parental, but the basic human tendency is still there, so the concept applies.

 

This sales technique works when it’s time to close and the prospect gives you an objection.  But before you stick out your hand and say good-bye, remember that two conditions must exist for it to work.

 

1)      He must have stated how your solution will solve his problem.

2)      The prospect has told you he has a budget big enough to buy your solution.

 

If you do use this tactic, act the part with conviction.  When you make the statement, convey to the prospect that you believe the sale is never going to happen.  

 

And when the prospect tells you that it’s really not over, offer your help. 

 

“Oh, I got the wrong impression.  What would you like me to do now?”

 

Then wait (forever if necessary!) for a response. How do you do this? Our on-line sales training will help.

 

 

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